1) A stock sells for $100 five years after it was purchased for $45. What is the holding period return? Does this overstate the annualized, compound return? Prove/dis-prove it.

2) If inflation is a constant 3% per year, what will the cost of a $25,000 car be in 25 years? Show your work

3) A company has assets of $10M, liabilities of $3.2M and 1.5M shares outstanding and a current share price of $5. what is the NAV? Would you be buying the stock at a discount of premium?

4) Look at Exhibit 17.3 on page 285. You invest $1,000 is each of the four categories of funds at the beginning of 1996 and withdraw your money at the end of 2015. For each of the four categories, calculate how much you would have earned/lost over that 20 year period.